Question
A commentator on the financial markets notes that interest rates are steady at 6.25%, inflation has been 2.5% and you anticipate inflation rising to 3.25%.
A commentator on the financial markets notes that interest rates are steady at 6.25%, inflation has been 2.5% and you anticipate inflation rising to 3.25%. Given this, the real rate of return is closest to:
| A. | 3.75%. | |
| B. | 3.00%. | |
| C. | 8.75%. |
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
8th Edition
1264098723, 978-1264098729
